Tablature Tattoo tattoo parlor business plan financial plan. Tablature Tattoo will open a small tattoo parlor where both tattoo
newbies and collectors will be able to work with two established, talented artists.

Tablature Tattoo

Tattoo Parlor Business Plan

Financial Plan

The financial plan for Tablature Tattoo is to raise $27,000 from a combination of personal savings, a long-term loan, and short-term borrowing to launch the business. The business will achieve cash flow and profit break-even in the seventh month of operation and net profit will be achieved in the first year, allowing for dividends to be paid to the owners beyond their salaries starting in year two.

Start-up Funding

The start-up funding will be primarily from investment by the co-owners and founders, Julie and Jake Hunt, who will each contribute $7,500. They will borrow $2,000 on credit cards and seek a three-year loan of $10,000 for the remaining cash, with their home equity as collateral. This will cover the required $27,000 in funding needed to launch.

Start-up Funding

Start-up Expenses to Fund

$8,700

Start-up Assets to Fund

$18,300

Total Funding Required

$27,000

Assets

Non-cash Assets from Start-up

$8,500

Cash Requirements from Start-up

$9,800

Additional Cash Raised

$0

Cash Balance on Starting Date

$9,800

Total Assets

$18,300

Liabilities and Capital

Liabilities

Current Borrowing

$2,000

Long-term Liabilities

$10,000

Accounts Payable (Outstanding Bills)

$0

Other Current Liabilities (interest-free)

$0

Total Liabilities

$12,000

Capital

Planned Investment

Jake Hunt

$7,500

Julie Hunt

$7,500

Additional Investment Requirement

$0

Total Planned Investment

$15,000

Loss at Start-up (Start-up Expenses)

($8,700)

Total Capital

$6,300

Total Capital and Liabilities

$18,300

Total Funding

$27,000

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Projected Profit and Loss

Gross margins will improve slightly as sales of full sessions increase relative to other services.

The marketing budget includes $150 per month to cover website hosting and maintenance and periodic runs of flyers or new business cards. Depreciation is for the long-term assets of the business over three years. Rent is $1,500 per month and utilities $150 per month (electricity, phone and internet). Insurance is not expected to rise significantly as the business will stay within its insurance bracket during this period. Payroll taxes of 15% and employee benefits of 10% (health insurance) are applied to payroll for the Hunts and the second artist's wages. Tattoo supplies of $100 per month are anticipated to replenish items purchased before the launch. Inflationary increases are applied to most items and to prices charged to customers.

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Projected Cash Flow

The business will reach cash flow break-even mid-year, and be able to pay dividends in year two while keeping a cash balance of around $20,000 for unexpected needs. The short-term debt will be paid off in the first year and the long-term loan will be paid off over the first three years of operation. Some additional long-term assets (replacements of equipment and additional tools) will be purchased over these years as well.

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Tablature Tattoo tattoo parlor business plan financial plan. Tablature Tattoo will open a small tattoo parlor where both tattoo
newbies and collectors will be able to work with two established, talented artists.